The Sunday morning news. [volume] (Jersey City [N.J.]) 1886-1891, 1887-03-13
WIATTHE LAWYERS THINK
.dB0UT LEGISLATION FOR BUILDING
and LOAN AsSOCIATIONs.

of the Associations Have no Fear of
Danger-Interesttng Interviews.
The introduction by Assemblyman Hud-
Epeth, in the Legislature, of bill relating
TO Building and Loan Associations, has
created considerable discussion among
the members sof such associations, and
has brought out various and conflicting
opinions as to the necessity of any legis-
ton for their government. Some of these
opinions were freely expressed at the meet
!, ing of delegates Of fifteen associations held
last night week. at the Lafayette wigwam,
report of which appeared in last Sundays
News. 1t was declared then by msjority
of the delegates, that they did not need any
legislation whatever on the subject, and
resolution was passed requesting Mr.. Hud-
speth to withdraw bis bill from the Legis-
lature, with which request Mr.. Hudspeth
has since complied. fhe meeting was at
tended by several lawyers, who pointed
cut where, in their opinion, the present
law relating to the associations, which
was passed in 1949 aAd revised in 1876,
is defe ctive, and in what respects it
should be amended but the majority
of the delegates fatty disagreed with
the lawyers and decided that the present
law is ample and contains no defects dan
gerous to the associations. There were in
timations made, however, by the lawyers,
thatif the supposed defects were not rem
edied they might prove disastrous to the
associations, and they expressed the belief
that it would be wise to have any existing
doubts settled by legislation rather than to
leave them to be settled at some future
time in the courts. The following Office
lions were made to the present law by
those contending for further legislation
First, that the law is too broad, and it was
not clear what powers were given to the
associations; second, that it did not con-
template the issuing of se1ies third that
section seven, which reads:
cit shall be lawful for married women
to hold shares in any association formed under
this act provided said shares paid out OF the
earnings of said married women, with
money given by others than the husband of said
married women ="
should be repealed. These are the main
objections made.
When it is considered that there are per
haps 225 building and loan associations in
this State, controlling about fifteen millions
of dollars, the subject becomes one of i'm
portance; and in view of the limitations
made that there is danger of collapse of
the associations at s ONE time, the SUNDAY
MORNING NEWS sent one of its reporters
among gentlemen interested in the assocla-
tons to obtain their views on the question
whether there is any fear of such an event;
and it is safe to say that large majority OF
the members of the associations are not
troubled in the slightest degree by the sup
posed defects in the law. Some lawyers,
however, who view the matter in legal
light, think differently
Counsellor John W. Heck said in sub
stance: 81 believe that the present law
should be changed in many respects. 1t
contains no system. 1t is plain to see what
the associations can do under it, but who
can tell what they can not do Nearly all
the fssociations issue series, yet it is nice
question whether they have right to do
So Besides the law contains provision
relating to married women holding shares
which should certainly bs repealed, be-
cause siRce its adoption general change
has taken place in the law relating to mar
ried women. The provision may throw
cloud upon all the transactions made by
married woman as shareholder, and may
open the door to law suits. | think that
law, such as they have in Massachusetts,
should be passed, and then there would
not be any room for doubt Of course"
he continued, 81 do not mean to say that
there is any immediate danger. but as q
LAWYER can see where much trouble could
be caused This can all be avoided by
having clear, concise bill passed"
Senator Edwards was next seen. AT the
meeting referred to and which he attend
ed, he stated in reference to the married
women's clause of the present law, that he
was afraid whenever he made out mort
gage to married woman, because if it
could ever be proved that the money with
o1, r1,o hoe cfo sS,k ho \
ton was gwen her by her husband, the
mortgage might be worthless. When in
teryieWed he said: 81 am not only mem
Der of the Legislature, but also the coun-
sci for one of the most prosperous associa-
tons (the Lafayette) in the county, and |
take a great interest in it. l think that
the present law should be changed in some
respects. I do not say that any sweeping
change should be made, but that remedial
legislation IS necessary. The present law
, is too doubtful and might lead to serious
results In these prosperous times there
may not be any Hanger, but Il the time
comes when money is scarce and when PEG
pie will seek to avoid their obligations or
debts, they may fad some way of doing
SO. little legislation will guard against
all danger, and think it should be done
now. Many men feel safe because the as
sociations have gone along well, but
they might have trouble yet"
Counsellor John DENIM said that the
married swomen's clause was good law
and should not be repealed. Il think"
he said, ''that it was adopted to prevent
woman's husband from defrauding his
creditors by transferring his money or
property to her. 1t is for the protection
of creditors aud should stand
The reporter next saw a lawyer who
would not permit his name to be used, and
who undoubtedly expressed the opinions
of those who did not view the SUBJECT in
strictly legal light. He Is acquainted with